简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The company's solvency was under regulatory scrutiny before its unsuccessful acquisition by BitGo.
On June 21, financial regulators in Nevada took action against Prime Trust by issuing a cease and desist order. The Nevada Financial Institutions Division (NFID) had been closely monitoring Prime Trust's solvency before the potential acquisition or merger with BitGo.
However, BitGo ultimately decided to abandon the deal on June 22. The NFID's investigation revealed that Prime Trust had failed to adequately safeguard assets under its custody and was unable to fulfill client withdrawal requests.
As a result, the cease-and-desist order prohibits Prime Trust from accepting fiat currency and cryptocurrency from both current and new clients. This regulatory intervention aims to protect the interests of clients and ensure compliance with financial industry standards.
According to the issued cease and desist order, Prime Trust's financial condition has reached a critically deficient level, rendering the firm in an unsafe and unsound state. The order highlights that Prime Trust is facing a substantial deficit and/or insolvency, indicating a severe deterioration in its financial standing.
Furthermore, the order accuses Prime Trust of willfully and materially breaching its obligations towards its clients. As per the order, Prime Trust has a 30-day window to request an administrative hearing in response to the allegations made against the company.
As a consequence of this development, Stably, a stablecoin firm, has announced a temporary suspension of both minting and user withdrawals. This decision comes in response to the incident involving Prime Trust, as Stably relied on Prime Trust as its custodian.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Bitkey's new inheritance feature ensures seamless Bitcoin transfers to beneficiaries. Available to all customers by January 2025 with a secure claims process.
The CFTC's latest decision clears the way for Bitcoin ETF options, boosting institutional interest and market liquidity in crypto investments.
Revolut will launch UK and EU stock trading in 2025, challenging major brokers. Learn how this fintech disruptor aims to reshape retail investing.
The body of missing crypto influencer Kevin Mirshahi, abducted in June, was found in Montreal. A woman has been charged in connection with his murder.